What specifically is alpha and what exactly is the claim here well there are essentially two types of alpha just spell that right two types of alpha there is what I call fun alpha and there is security-based alpha brisbane now what do I mean by that both similar idea right it's all about capturing the performance Almost you weren't expecting to get heavy hint that's been added by the fund manager well I mean by the performance you're expecting to get well armed there is a thing out there called the capital asset pricing model which I cover in another video that talks about why the city's share pricing model is best because I'm not a little detail on here there is a model out there that basically calculates the return. You should Popular financial services to get from a given portfolio or a given share or security right and that model is built on something called beta and beta I cover in another video rather unimaginative entitled what is beta all right so what I'm about to say is built on two things cap am covered in one video and beta covered in another but essentially what that model uses beta tries to do it. Says here's the return you can expect to get from a fund or a security anything else on top is alpha anything else that that model doesn't predict you should expect to receive is fund manager rated value now I can distill that down bit turn it to plain English and say actually on the left here it pretty much works a little like this alright he imagined a fund set itself up and called itself the UK equity alpha fund alright band
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